An Electronic Money Institution (EMI) licence empowers the holder to provide a range of valuable financial services, including:

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1. Issuing Electronic Money: This encompasses the issuance of electronic money, such as prepaid cards and electronic wallets, enabling seamless digital transactions.

2. Cash Placement and Account Operations: Services that facilitate cash deposits into a payment account and encompass all essential operations related to managing a payment account.

3. Cash Withdrawals and Account Operations: Offering the capability for cash withdrawals from a payment account, along with handling all essential operational tasks associated with account management.

4. Execution of Payment Transactions: This involves executing payment transactions, which includes transferring funds between payment accounts within the user's payment service provider or with another payment service provider. This includes executing direct debits, both recurring and one-off, and conducting payment transactions using payment cards or similar devices. Additionally, credit transfers, including standing orders, are part of this service.

5. Payment Transactions with Credit Line Coverage: Providing the execution of payment transactions where the funds are covered by a credit line for a payment service user. This includes executing direct debits, including one-off transactions, and conducting payment transactions using payment cards or similar devices. It also encompasses executing credit transfers, including standing orders.

6. Payment Instruments and Acquiring Transactions: Offering payment instruments and facilitating payment transactions, including acquiring payments, which ensures smooth processing of financial transactions.

7. Money Remittance: Enabling safe and efficient cross-border money remittance, providing individuals and businesses with a reliable means of transferring funds.

8. Payment Initiation Services: Offering payment initiation services that allow users to initiate payments directly from their accounts, ensuring a seamless and secure payment process.

9. Account Information Services: Providing valuable account information services, offering users insights into their financial transactions, balances, and other relevant account details.

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In summary, an EMI licence empowers businesses to provide a comprehensive suite of financial services, spanning electronic money issuance, payment execution, money remittance, payment initiation, account information services, and more. This licence unlocks a world of possibilities, enabling service providers to cater to diverse financial needs while adhering to regulatory standards.

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Capital Requirements: 

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For an E-money (Electronic Money Institution) licence, the initial capital requirement stands at €350,000.

Regarding ongoing capital requirements, these are calculated as 2% of the outstanding electronic money that a firm has issued. This ensures the continued financial stability and integrity of the licensed institution.

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Fees: 

The E-money (Electronic Money Institution) licence application incurs an application fee of £5,000. This fee is payable upon the submission of your application.

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Application Requirements & Documentation:

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To initiate your journey toward obtaining FCA authorisation for the electronic money institution (EMI) licence, you'll partner with K2 Regulatory Consultants, working closely to prepare the essential components for a successful application. Here's what you'll need to complete in preparation for submission:

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1. Application Form and Supplementary Forms: You'll need to complete the official application form along with any supplementary forms required. These forms are a critical part of your application package.

2. Business Plan and Financial Forecasts: A comprehensive business plan, inclusive of financial projections spanning a 3-year horizon, is essential to outline your vision and strategy for the EMI licence.

3. Programme of Operations: Articulate a clear and detailed programme of operations that outlines how your electronic money institution will function, including the range of services you intend to offer.

4. Business Organisation Description: Provide an overview of your business structure, highlighting key roles, responsibilities, and organizational hierarchy.

5. Evidence of Initial Capital: Furnish evidence confirming your initial capital, aligning with the specified capital requirement for the EMI licence.

6. User Funds Safeguarding Details: Outline your approach to safeguarding user funds, ensuring their security and protection.

7. Compliance, Governance, and Internal Controls: Detail your compliance and governance arrangements, emphasizing internal controls that will maintain regulatory adherence.

8. Security Incident and Complaints Handling Procedure: Provide a procedure for monitoring, managing, and responding to security incidents and customer complaints related to security concerns.

9. Sensitive Payment Data Management Process: Outline processes for managing, monitoring, tracking, and controlling access to sensitive payment data.

10. Business Continuity Measures: Describe your strategies to ensure business continuity and resilience in various scenarios.

11. Data Collection Methodology: Present your approach to gathering performance, transaction, and fraud-related data.

12. Security Policy: Include a copy of your security policy, outlining measures to safeguard electronic money transactions and data.

13. Financial Crime Policy: Detail your internal mechanisms to comply with anti-money laundering and countering-terrorist financing (AML/CTF obligations).

14. Qualifying Holders Information: Provide details about qualifying holders, specifically shareholders holding or controlling 10% or more of the applicant firm.

15. Outsourcing Arrangements: Disclose any outsourcing arrangements that will be part of your EMI operations.

16. Management Team Details: Highlight key individuals responsible for managing your firm, including their roles and responsibilities.

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Once these components are meticulously prepared, K2 Regulatory Consultants will guide you through the process of submitting them via the FCA's online platform, Connect. Our collaborative efforts will ensure that your application for FCA authorisation for the electronic money institution licence is thorough, compliant, and poised for success.

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